Reid takes health in major reshuffle

Downing Street today announced the government's biggest reshuffle since the general election.

The big winners are John Reid, who becomes health secretary, Lord Falconer, who takes up a new post as secretary of state for constitutional affairs, and Peter Hain, who becomes the new leader of the House of Commons.

The historic post of lord chancellor has also been abolished, with its final holder, Lord Irvine, retiring as predicted. Most of its powers will be taken over by the new department of constitutional affairs.

At the Department of Health, the combative Mr Reid replaces Alan Milburn, who resigned from the government this morning to spend more time with his family. His appointment is unlikely to be seen as an attempt by Tony Blair to defuse the row over semi-autonomous foundation hospitals, which many Labour backbenchers are known to oppose.

The new department of constitutional affairs, headed by Mr Blair's former flatmate, Lord Falconer, will take over the responsibilities of the Scottish and Welsh offices, as well of those of the Lord Chancellor's department. These were felt to have become largely redundant after many of their powers were transferred to the new devolved assemblies. The former Scottish secretary, Helen Liddell, had asked to retire from government.

The former Welsh secretary, Peter Hain, meanwhile, has been promoted, replacing Mr Reid as leader of the Commons. He will continue to speak on Wales there, while the transport secretary, Alastair Darling, will speak on Scotland.

Conservatives and nationalists criticised the abolition of the Scottish and Welsh offices. Nick Bourne, leader of the Tories in Wales, said the move was "a disaster".

"Wales needs direct representations in the Westminster cabinet," he added. A Plaid Cymru spokesman said the decision was "very regrettable".

The new department for constitutional affairs will not be taking on judicial appointment, an independent judicial appointments commission will instead be established to recommend candidates to become judges. Plans for this will be published before parliament breaks for the summer so they can be consulted upon.

In another significant constitutional reform the lord chancellor's role as a judge and speaker of the House of Lords is also to come to an end. The new speaker of the Lords will not be a minister. And a new supreme court will replace the existing system of law lords and the new secretary of state will not be a member.

Lord Falconer will operate from offices in the lord chancellor's department and not the Lords and will not take the substantial salary that Lord Irvine's successor could have been entitled too.

Today's reshuffle ends with a rare cut in the number of ministers, with the cabinet shrinking by two posts.